Nippon Sheet Glass Company (5202) Q4 2025 earnings summary

Executive summary

• Revenue increased slightly year-over-year to ¥840.4bn, but operating profit dropped 54% to ¥16.5bn due to reduced profitability in the Architectural segment and exceptional charges.

• Net loss attributable to owners was ¥13.8bn, reversing a profit of ¥10.6bn last year, mainly from lower operating profit and exceptional charges.

• Shareholders' equity ratio decreased to 10.5%, and interest-bearing debt increased, though free cash flow remained positive.

• No ordinary dividends declared for FY2025 or forecast for FY2026; Class A shares received ¥1,950 million in dividends.

• The outlook for FY2026/3 anticipates a return to net profit, driven by expected European market recovery in H2, but with uncertainty from US tariff policy.

Financial highlights

• Full-year revenue rose to ¥840.4bn (up 0.9% year-over-year), while operating profit dropped to ¥16.5bn (down 54%).

• Net loss for the period was ¥13.8bn, compared to a net profit of ¥10.6bn the previous year.

• EBITDA for the year was ¥65.8bn, down from ¥81.8bn year-over-year.

• Free cash flow was positive at ¥10.0bn, supported by working capital improvements.

• Basic earnings per share dropped to ¥(173.20) from ¥95.40.

Outlook and guidance

• FY2026/3 revenue is forecast at ¥850.0bn, with operating profit expected to rise to ¥31.0bn.

• Net profit is projected at ¥2.0bn, reflecting anticipated European recovery and ongoing cost reduction efforts.

• No ordinary dividends forecast for FY2026.

• The company is closely monitoring US tariff policy, which could impact both demand and costs.

• Medium-term plan targets: operating profit ¥64.0bn, free cash flow ¥27.0bn, equity ratio 15% by FY2027.